KARACHI: Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has said the share of manufacturing in the national economy is steadily declining which is creating serious problems.
In a statement, he said that a large portion of capital is going to non-productive sectors, which is benefiting a few while affecting the economy and masses.
Mian Zahid Hussain said that improved production, exports, and employment opportunities will remain a distant dream unless manufacturing is made more profitable than other sectors.
He said that investment in manufacturing can be lured to reduce dependence on imports, cut the deficit and tackle unemployment through proper intervention.
He noted that the share of manufacturing in the GDP has been declining by an average of 0.1 percent every year for decades. Manufacturing accounted for 15 percent of the GDP in 90s, which has now fallen to 11 percent and is declining further.
The ‘mini-budget’ will hit the manufacturing sector hard and shrink its volume if the system of refunds is not improved without further delay, he warned.
Mian Zahid further said that too much dependence on imports in absence of good manufacturing leads to a trade deficit and if the trade deficit continues to rise, then the balance of payments deteriorates, which results in more debt.
Copyright Business Recorder, 2022
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